The present invention relates to the new and distinct hosta plant, Hosta ‘Island Breeze’ discovered in May of 2010 by Hans A. Hansen and Ariel Diaz at a perennial nursery in Zeeland, Mich., USA as an uninduced whole plant mutation in a tissue cultured crop of Hosta ‘Paradise Island’ U.S. Plant Pat. No. 20,798. The new plant has been successfully asexually propagated both by division and by whole shoot tip tissue culture at a nursery in Zeeland, Mich. and in both asexual propagation systems found to be stable and produce identical plants that maintain the unique characteristics of the original plant.